Big-hearted New Zealanders double their donations

Big-hearted New Zealanders
double their donations to charitable causes

New Zealanders have doubled their donations to
charitable causes in the past six years, a new report has
revealed.

The ‘Giving New Zealand’
Philanthropic Funding Report 2011’, commissioned by
Philanthropy New Zealand, shows that New Zealanders gave
about $2.67 billion to charitable and community causes
during 2011, compared to $1.27 billion estimated in a
previous study in 2006.

Personal donations and
bequests from individuals were the single largest source of
philanthropy, contributing $1.55 billion (58 per cent of
total estimated giving) an increase of 23 per cent.

The report, prepared by Berl Economics, also found that
trusts and foundations funded 36 per cent of giving and
business giving – excluding sponsorship – accounted for
just under six per cent.

Robyn Scott, Executive
Director of Philanthropy New Zealand said: “While a small
nation, New Zealanders have big hearts: Just over one
million people gave to charitable causes in New Zealand in
2011.

“We are also seeing an increase in
thoughtful targeted giving with people supporting their
chosen causes through new easily accessible channels such as
payroll giving.

“Vodafone New Zealand is a very
good example of business giving, through the Vodafone New
Zealand Foundation. Since 2002, it has given more than $11m
to over 150 charitable organisations.”

Focused on
improving the health and wellbeing of young New Zealanders,
the Vodafone Foundation builds partnerships with charity
partners to strengthen their ability to work with Kiwi youth
in the community.

The Christchurch earthquake
appeals led to a massive spike in donations in March 2011,
but Ms Scott says the study clearly shows an ongoing pattern
of increased generosity.

While improved data capture
accounts for some of the increase, major factors also
include the lifting of the cap on tax credits - formerly
known as a tax rebate – which Philanthropy New Zealand
successfully advocated for.

More than 1000 employers
have also signed up to payroll giving, since the scheme was
introduced two years ago.

This enables employees to
donate to their favourite charitable organisation straight
from their pay and receive an immediate tax credit rather
than waiting until the end of the financial year.

Kiwis donated $3.05 million through payroll giving last
year. In September 2011 alone, over 2,100 employees donated
just over $240,000.

The Ministry of Social
Development was the first large agency to implement payroll
giving in April 2010. Staff have now donated over $415,000
to a wide range of causes, including charities, churches and
schools.

MSD staff also used payroll giving to
quickly send donations to charities delivering relief
following the Christchurch earthquakes and Pike River.

Ms Scott said: “It’s so easy to join payroll giving.
We are hoping to see a continuous rise in payroll giving as
word spreads and people become more confident in targeted
giving to their chosen causes.”

New Zealanders are
now more generous than their Australian neighbours, and
second only to the United States in giving.

The top
three activities benefiting from philanthropic funding were
culture and recreation with 31 per cent, education and
research with 25 per cent and social services with 11 per
cent.

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